Origin Materials, Inc. Reports Operating and Financial Results for Third Quarter 2023
- Origin Materials successfully commenced commercial-scale production at Origin 1, generating a quarterly revenue of $7.1 million, a significant increase from the previous year. The company's contracted offtake agreements and capacity reservations exceeding $10 billion indicate a strong demand for its products, validating its proprietary technology and global sustainability impact.
- None.
– Origin 1 Commences Commercial-Scale Production –
– Origin 2 Project Development Advances with Increasing Interest from Strategic Partners –
– Contracted Offtake Agreements and Capacity Reservations Exceed
– Updates 2023 Revenue and Adjusted EBITDA Outlook –
“First, I would like to extend a warm welcome to Matt Plavan, Origin’s new CFO,” said Rich Riley, Co-Chief Executive Officer of Origin. “I am confident Matt will be a tremendous addition to the team. Moreover, we are thrilled to have started production at Origin 1 in early October and are now in the process of sending CMF and HTC to our customers and strategic partners. Our commercial partners have responded positively to this news, and many have already visited our plant. Their
Company Third Quarter and Recent Business Highlights
Origin Materials reported quarterly revenue of
- Origin Materials Announces Commencement of Commercial-Scale Production at Origin 1. The state-of-the-art plant scales up the Company’s core technology platform for converting sustainable wood residues into intermediate chemicals, including CMF, HTC, and oils and extractives, a key milestone for advancing the Company's strategic partnerships. Origin’s products can decarbonize and improve the performance of a wide range of end-products, including bio-based apparel and textiles, green tires for the automotive industry, and bio-based, fully recyclable packaging.
- Origin Materials Announces Appointment of Matt Plavan as Chief Financial Officer. Mr. Plavan brings sixteen years of public company executive experience at technology-driven companies operating in complex business environments, as well as a proven track record of leading initiatives to fund the commercial scale up of disruptive technologies into well-established industries.
-
Origin Materials Awarded BioMADE Funding to Advance Department of Defense Sustainability Goals. Origin Materials is one of nine projects announced by BioMADE, totaling
in funding, that aim to aid in the advancement of Department of Defense supply chain resiliency and sustainability goals, re-shore manufacturing jobs to$18.7 million the United States , and enhance the domestic bioindustrial manufacturing ecosystem.
Origin 1 and Origin 2 Update
Following the close of the second quarter, the Company announced the commencement of commercial-scale production at Origin 1, located in
With respect to Origin 2, the project continues to advance with an appropriate focus on optimal funding strategies. The mix of funding is evolving with increasing interest from strategic partners. The next step for Origin 2 is a revised FEED, or front-end engineering design package, and the Company will provide an update when appropriate.
Results for Third Quarter 2023
Cash, cash equivalents and marketable securities were
Revenue for the third quarter was
Operating expenses for the third quarter were
Net income was
Adjusted EBITDA loss was
Shares outstanding as of September 30, 2023 were 144.2 million including 4.5 million shares that are subject to forfeiture based on share price performance targets previously disclosed in our filings.
Full Year 2023 Outlook
Based on current business conditions, business trends and other factors, the Company is updating the following guidance for revenue and Adjusted EBITDA for fiscal year 2023:
-
Consistent with the focus on cash management, during the quarter, the Company intentionally scaled back its supply chain activation business because, although it has long-term strategic value, it has low short-term margins and high working capital requirements. Additionally, some joint development programs expected to close in 2023 are now expected to close in 2024. Therefore, the Company now expects 2023 revenue of
to$25 million versus$30 million to$40 million .$60 million -
From this reprioritization, we expect a beneficial impact on EBITDA loss, improving our guidance range to
to$45 million from$50 million to$50 million .$60 million
For a reconciliation of a non-GAAP figure to the applicable GAAP figure, please see the table captioned ‘Reconciliation of GAAP and Non-GAAP Results' set forth at the end of this press release. These expectations do not consider, or give effect to, among other things, unforeseen events, including changes in global economic conditions.
Webcast and Conference Call Information
Company management will host a webcast and conference call on November 9, 2023, at 5:00 p.m. Eastern Time, to discuss the Company's financial results.
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s third quarter update presentation by logging onto the Investor Relations section of the Company's website at https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by dialing 1-877-550-1707 (domestic) or +1-848-488-9020 (international). A telephonic replay will be available approximately three hours after the call by dialing 1-844-512-2921, or for international callers, +1-412-317-6671. The conference ID for the live call and pin number for the replay is 11154017. The replay will be available until 11:59 p.m. Eastern Time on November 16, 2023.
About Origin Materials, Inc.
Headquartered in
Non-GAAP Financial Information
To supplement the Company’s financial results presented in accordance with generally accepted accounting principles in
Non-GAAP financial measures are not defined under
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
The Company is unable to reconcile forward-looking Adjusted EBITDA information provided in this press release to net income, the most closely comparable
For more information on this non-GAAP financial measure, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin Materials’ business strategy, estimated total addressable market, anticipated synergies from partnerships, ability to preserve cash and bring sustainable products to market while maximizing shareholder value, ability to bring world-scale plants online as soon as possible, expectation of increased engagement of our partners, access to financing sources, budget and timelines for Origin 2, anticipated benefits of and demand for our potential products and platform, ability to convert capacity reservations and offtake agreements into revenue, commercial and operating plans, product development plans and announcements of such plans, anticipated growth and projected financial information and ability to realize the anticipated benefits of any partnerships discussed in the press release. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin Materials. These forward-looking statements are subject to a number of risks and uncertainties, including that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business as a result of Russia’s military intervention in
ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share and per share data) |
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
66,106 |
|
|
$ |
107,858 |
|
Restricted cash |
|
— |
|
|
|
490 |
|
Marketable securities |
|
123,430 |
|
|
|
215,464 |
|
Accounts receivable |
|
10,625 |
|
|
|
— |
|
Other receivables |
|
1,852 |
|
|
|
4,346 |
|
Inventory |
|
821 |
|
|
|
— |
|
Derivative asset |
|
277 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
6,041 |
|
|
|
3,341 |
|
Total current assets |
|
209,152 |
|
|
|
331,499 |
|
Property, plant, and equipment, net |
|
234,117 |
|
|
|
154,183 |
|
Operating lease right-of-use asset |
|
4,610 |
|
|
|
2,779 |
|
Intangible assets, net |
|
129 |
|
|
|
160 |
|
Other long-term assets |
|
23,033 |
|
|
|
5,079 |
|
Total assets |
$ |
471,041 |
|
|
$ |
493,700 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,991 |
|
|
$ |
10,384 |
|
Accrued expenses |
|
7,071 |
|
|
|
8,414 |
|
Operating lease liability, current |
|
404 |
|
|
|
619 |
|
Deferred income |
|
1,374 |
|
|
|
— |
|
Other liabilities, current |
|
2,896 |
|
|
|
51 |
|
Derivative liability |
|
— |
|
|
|
344 |
|
Total current liabilities |
|
16,736 |
|
|
|
19,812 |
|
|
|
|
|
||||
Earnout liability |
|
3,629 |
|
|
|
42,533 |
|
Canadian Government Research and Development Program liability |
|
7,169 |
|
|
|
7,185 |
|
Assumed common stock warrants liability |
|
3,434 |
|
|
|
30,872 |
|
Notes payable |
|
3,459 |
|
|
|
5,847 |
|
Operating lease liability |
|
4,270 |
|
|
|
2,249 |
|
Other liabilities, long-term |
|
8,257 |
|
|
|
8,297 |
|
Total liabilities |
$ |
46,954 |
|
|
$ |
116,795 |
|
|
|
|
|
||||
STOCKHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
380,295 |
|
|
|
371,072 |
|
Retained earnings |
|
56,008 |
|
|
|
21,772 |
|
Accumulated other comprehensive loss |
|
(12,230 |
) |
|
|
(15,953 |
) |
Total stockholders’ equity |
|
424,087 |
|
|
|
376,905 |
|
Total liabilities and stockholders’ equity |
$ |
471,041 |
|
|
$ |
493,700 |
|
ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) |
||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In thousands, except share and per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues |
|
$ |
7,140 |
|
|
$ |
— |
|
|
$ |
15,742 |
|
|
$ |
— |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
6,340 |
|
|
|
— |
|
|
|
14,114 |
|
|
|
— |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
4,927 |
|
|
|
3,732 |
|
|
|
15,398 |
|
|
|
8,717 |
|
General and administrative |
|
|
7,633 |
|
|
|
5,834 |
|
|
|
23,908 |
|
|
|
16,769 |
|
Depreciation and amortization |
|
|
386 |
|
|
|
180 |
|
|
|
1,021 |
|
|
|
488 |
|
Total operating expenses |
|
|
12,946 |
|
|
|
9,746 |
|
|
|
40,327 |
|
|
|
25,974 |
|
Loss from operations |
|
|
(12,146 |
) |
|
|
(9,746 |
) |
|
|
(38,699 |
) |
|
|
(25,974 |
) |
Other income (expenses) |
|
|
|
|
|
|
|
|
||||||||
Interest income (expenses) |
|
|
(1,130 |
) |
|
|
2,309 |
|
|
|
4,308 |
|
|
|
6,077 |
|
Gain in fair value of derivatives |
|
|
126 |
|
|
|
1,129 |
|
|
|
620 |
|
|
|
1,725 |
|
Gain (loss) in fair value of warrants liability |
|
|
22,815 |
|
|
|
(1,419 |
) |
|
|
27,438 |
|
|
|
15,610 |
|
Gain in fair value of earnout liability |
|
|
18,757 |
|
|
|
15,147 |
|
|
|
39,137 |
|
|
|
63,561 |
|
Other income, net |
|
|
2,603 |
|
|
|
879 |
|
|
|
1,655 |
|
|
|
1,577 |
|
Total other income, net |
|
|
43,171 |
|
|
|
18,045 |
|
|
|
73,158 |
|
|
|
88,550 |
|
Net income before income tax expenses |
|
|
31,025 |
|
|
|
8,299 |
|
|
|
34,459 |
|
|
|
62,576 |
|
Income tax expenses |
|
|
(94 |
) |
|
|
— |
|
|
|
(223 |
) |
|
|
— |
|
Net income |
|
$ |
30,931 |
|
|
$ |
8,299 |
|
|
$ |
34,236 |
|
|
$ |
62,576 |
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on marketable securities, net of tax |
|
$ |
1,593 |
|
|
$ |
(1,403 |
) |
|
$ |
4,507 |
|
|
$ |
(10,783 |
) |
Foreign currency translation adjustment, net of tax |
|
|
(4,176 |
) |
|
|
(7,253 |
) |
|
|
(784 |
) |
|
|
(8,061 |
) |
Total comprehensive income (loss) |
|
$ |
28,348 |
|
|
$ |
(357 |
) |
|
$ |
37,959 |
|
|
$ |
43,732 |
|
Net income per share, basic |
|
$ |
0.22 |
|
|
$ |
0.06 |
|
|
$ |
0.25 |
|
|
$ |
0.46 |
|
Net income per share, diluted |
|
$ |
0.22 |
|
|
$ |
0.06 |
|
|
$ |
0.24 |
|
|
$ |
0.44 |
|
Weighted-average common shares outstanding, basic |
|
|
139,806,045 |
|
|
|
138,061,829 |
|
|
|
139,374,106 |
|
|
|
137,348,180 |
|
Weighted-average common shares outstanding, diluted |
|
|
142,703,550 |
|
|
|
142,197,014 |
|
|
|
142,872,174 |
|
|
|
142,134,560 |
|
ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
Nine months ended
|
||||||
(in thousands) |
2023 |
|
2022 |
||||
Cash flows from operating activities |
|
|
|
||||
Net income |
$ |
34,236 |
|
|
$ |
62,576 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
1,055 |
|
|
|
488 |
|
Amortization on right-of-use asset |
|
458 |
|
|
|
423 |
|
Stock-based compensation |
|
7,031 |
|
|
|
3,719 |
|
Realized gain of marketable securities |
|
(1,706 |
) |
|
|
— |
|
Amortization premium and discount of marketable securities, net |
|
3,701 |
|
|
|
— |
|
Change in fair value of derivatives |
|
(620 |
) |
|
|
(1,725 |
) |
Change in fair value of common stock warrants liability |
|
(27,438 |
) |
|
|
(15,610 |
) |
Change in fair value of earnout liability |
|
(39,137 |
) |
|
|
(63,561 |
) |
Change in fair value of incremental acquisition fee accrual |
|
— |
|
|
|
(35 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
(8,130 |
) |
|
|
(926 |
) |
Inventory |
|
(821 |
) |
|
|
— |
|
Prepaid expenses and other current assets |
|
(2,703 |
) |
|
|
(1,464 |
) |
Other long-term assets |
|
(17,954 |
) |
|
|
(5,019 |
) |
Accounts payable |
|
2,819 |
|
|
|
5,195 |
|
Accrued expenses |
|
1,707 |
|
|
|
4,380 |
|
Operating lease liability |
|
(529 |
) |
|
|
(338 |
) |
Deferred income |
|
1,374 |
|
|
|
— |
|
Other liabilities, current |
|
2,846 |
|
|
|
2,214 |
|
Other liabilities, long-term |
|
(2,636 |
) |
|
|
221 |
|
Net cash used in operating activities |
|
(46,447 |
) |
|
|
(9,462 |
) |
Cash flows from investing activities |
|
|
|
||||
Purchases of property, plant, and equipment, net of grants |
|
(90,113 |
) |
|
|
(57,825 |
) |
Purchases of marketable securities |
|
(3,092,218 |
) |
|
|
(2,584,027 |
) |
Sales of marketable securities |
|
3,057,700 |
|
|
|
2,587,649 |
|
Maturities of marketable securities |
|
129,081 |
|
|
|
124,319 |
|
Capitalized interest on plant construction |
|
— |
|
|
|
(133 |
) |
Net cash provided by investing activities |
|
4,450 |
|
|
|
69,983 |
|
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
145 |
|
|
|
371 |
|
Net cash provided by financing activities |
|
145 |
|
|
|
371 |
|
Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash held in foreign currencies |
|
(390 |
) |
|
|
(4,549 |
) |
Net (decrease) increase in cash and cash equivalents, and restricted cash |
|
(42,242 |
) |
|
|
56,343 |
|
Cash and cash equivalents, and restricted cash, beginning of the period |
|
108,348 |
|
|
|
47,127 |
|
Cash and cash equivalents, and restricted cash, end of the period |
$ |
66,106 |
|
|
$ |
103,470 |
|
Origin Materials, Inc. Reconciliation of GAAP and Non-GAAP Results |
||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income |
|
$ |
30,931 |
|
|
$ |
8,299 |
|
|
$ |
34,236 |
|
|
$ |
62,576 |
|
Stock based compensation |
|
|
2,380 |
|
|
|
1,146 |
|
|
|
7,031 |
|
|
|
3,719 |
|
Depreciation and amortization |
|
|
386 |
|
|
|
180 |
|
|
|
1,021 |
|
|
|
488 |
|
Interest (income) expenses |
|
|
1,130 |
|
|
|
(2,309 |
) |
|
|
(4,308 |
) |
|
|
(6,077 |
) |
Gain in fair value of derivatives |
|
|
(126 |
) |
|
|
(1,129 |
) |
|
|
(620 |
) |
|
|
(1,725 |
) |
(Gain) loss in fair value of warrants liability |
|
|
(22,815 |
) |
|
|
1,419 |
|
|
|
(27,438 |
) |
|
|
(15,610 |
) |
Gain in fair value of earnout liability |
|
|
(18,757 |
) |
|
|
(15,147 |
) |
|
|
(39,137 |
) |
|
|
(63,561 |
) |
Other income, net |
|
|
(2,603 |
) |
|
|
(879 |
) |
|
|
(1,655 |
) |
|
|
(1,577 |
) |
Adjusted EBITDA |
|
$ |
(9,474 |
) |
|
$ |
(8,420 |
) |
|
$ |
(30,870 |
) |
|
$ |
(21,767 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231109228162/en/
Origin Materials
Investors:
ir@originmaterials.com
Media:
media@originmaterials.com
Source: Origin Materials, Inc.
FAQ
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